Loan calculator
Work out any one of payment, amount, rate or term from the other three. Shows the true APR once fees are included, and exactly what extra, one-time or biweekly payments save.
Quick answer: A $25,000 loan at 8.5% for 5 years costs $513 a month, and you pay $5,775 in interest over the loan, $30,775 in all.
By John Crane, MBA & the Editorial Team · Updated for the 2026 tax year. How we check our numbers
Monthly payment
$512.91
APR 8.500% · Payment $512.91
| Principal | $25,000 | 81.2% |
|---|---|---|
| Total interest | $5,775 | 18.8% |
- Loan amount
- $25,000
- Total interest
- $5,775
- Total cost
- $30,775
- Payoff
- Oct 2031
- Payments
- 60
- Prepayment saves
- -
Over the life of the loan
Amortization schedule
5 years · 60 payments| Year | Principal | Interest | Interest to date | Ending balance |
|---|---|---|---|---|
| 01 to Oct 2027 | $4,190.69 | $1,964.23 | $1,964.23 | $20,809.31 |
| 02 to Oct 2028 | $4,561.09 | $1,593.83 | $3,558.06 | $16,248.22 |
| 03 to Oct 2029 | $4,964.27 | $1,190.65 | $4,748.71 | $11,283.95 |
| 04 to Oct 2030 | $5,403.06 | $751.86 | $5,500.57 | $5,880.89 |
| 05 to Oct 2031 | $5,880.89 | $274.29 | $5,774.86 | $0.00 |
How this is calculated
Monthly payment
M = P × r / (1 − (1 + r)^−n)
P is the amount borrowed, r the annual rate divided by 12, and n the number of payments. Solving for amount, rate or term rearranges the same equation; the rate is found numerically.
APR
Upfront fees and points reduce the amount you actually receive. APR is the rate at which your payments repay that smaller amount, using the actuarial method required by the Truth in Lending Act (Regulation Z).
Biweekly payments
Half the monthly payment every two weeks adds up to 26 half payments, or 13 full payments, a year. The extra payment goes to principal, which shortens the loan and cuts interest.
Sources
Questions
What is the difference between interest rate and APR?
The interest rate sets your payment. APR also counts upfront fees such as origination charges and points, so it shows the loan's true yearly cost and is the better number for comparing offers.
Does paying extra each month really save money?
Yes. Extra principal stops accruing interest immediately, so every extra dollar saves interest for the rest of the loan. Check that your lender applies extra payments to principal and has no prepayment penalty.
How do I compare several loan offers?
Open Compare and upload a CSV with each offer's rate, term and fees, or download the template. The table ranks offers by total cost, which accounts for both interest and fees.